MPF exam Vesting 權益的歸屬 Practice questions

Question 1

In the MPF context, what does vesting principally describe?

Accepted Answer

The conferral on a person of legal ownership rights in a financial interest

Answer

The trustee's guarantee that investment losses will not reduce contributions

Answer

The employer's power to decide the monthly contribution amount

Answer

Permission for a member to withdraw MPF at any time

Question 2

Chan Mei-yan resigns after four months. Her employer's mandatory contributions have been paid to the approved trustee, and part of its voluntary contributions has vested in her under the scheme's governing rules. The employer proposes to reclaim these amounts solely because her service was short. Which statement is correct?

Accepted Answer

The employer cannot reclaim either category on the ground of short service

Answer

The employer may reclaim both categories

Answer

The employer may reclaim only the accrued benefits from its mandatory contributions

Answer

The employer may reclaim only its vested voluntary contributions

Question 3

Which statement about vesting of MPF benefits is NOT correct?

Accepted Answer

Full vesting guarantees that investment losses cannot reduce accrued benefits below the original contribution total

Answer

Employee mandatory contributions vest fully and immediately in the employee when paid to the approved trustee

Answer

Employer mandatory contributions vest fully and immediately in the employee when paid to the approved trustee

Answer

Investment income or profits from mandatory contributions, after allowing for related losses, also vest fully and immediately in the member

Question 4

Which contributions necessarily vest in full in the relevant contributor or account holder when paid to the trustee? (i) An employee's own voluntary contributions; (ii) a self-employed person's own voluntary contributions; (iii) a TVC account holder's tax deductible voluntary contributions; (iv) an employer's voluntary contributions for an employee, regardless of the scheme's governing rules.

Accepted Answer

(i), (ii) and (iii) only

Answer

(i) and (iv) only

Answer

(ii), (iii) and (iv) only

Answer

(i), (ii), (iii) and (iv)

Question 5

Ho Ho-yin's employer has recorded the mandatory contribution payable for him in its payroll records, but has not yet paid it to the approved trustee. Which event causes that contribution to vest fully and immediately in Ho as accrued benefits?

Accepted Answer

The contribution is paid to the approved trustee

Answer

The employer completes the payroll calculation for the period

Answer

Ho confirms that the payroll record is correct

Answer

The employer's financial year ends

Question 6

Cheng Wing-yan wants to establish how much of the voluntary contributions already paid by her employer for her has vested in her. Which should determine this?

Accepted Answer

The governing rules of her scheme

Answer

A statutory service-based vesting table common to all MPF schemes

Answer

The proportion chosen independently by the employer after each contribution

Answer

The proportion chosen by the trustee according to that year's investment performance

Question 7

Fong Ka-man's own voluntary contributions have been paid to the trustee, but her employer has not yet paid its mandatory contributions for the same period. Which statement about Fong's own voluntary contributions is correct?

Accepted Answer

They vested fully in her when paid to the trustee

Answer

They vest in her only after the employer pays its mandatory contributions for the same period

Answer

They are subject to the scheme's vesting arrangements for employer voluntary contributions

Answer

They vest in her only after the employer confirms that the contribution records are complete

Question 8

After Wong Wing-yan leaves her job, accrued benefits derived from her former employer's mandatory contributions remain in her MPF scheme. They subsequently generate investment income, with no related investment loss. How does that income vest?

Accepted Answer

It vests fully and immediately in Wong

Answer

It vests in the former employer because the former employer paid the original contributions

Answer

It vests in Wong only when she becomes employed again and resumes contributions

Answer

It follows the vesting arrangements for the former employer's voluntary contributions

Vesting 權益的歸屬

Meaning of Vesting and Mandatory Contributions 歸屬的意思與強制性供款

Investment Returns and Losses 投資回報與虧損

Members' Voluntary Contributions and TVC 個人自願性供款及可扣稅自願性供款

Employer Voluntary Contributions and Leaving Employment 僱主自願性供款與離職

Practice